TORONTO, Dec. 10, 2015 /CNW/ - Roxgold Inc. (the "Company"
or "Roxgold ") (ROG.V) is pleased to announce that the second
drawdown, totalling US$21 million,
has been completed under the US$75
million 6-year senior secured project finance facility (the
"Facility") for the development of the Yaramoko Gold Project (the
"Project") in Burkina Faso. The Facility is jointly
provided by Societe Generale Corporate & Investment Banking and
BNP Paribas (the "Banks").
Development Highlights:
- Overall construction program approximately 60% complete
- Second Facility drawdown of US$21
million completed
- Bulk earthworks complete
- Tailings Storage Facility ("TSF") lining 90% complete
- Underground mine access tunnel installed and engineered
backfill 60% complete
- Underground development of approximately 490 metres completed
to the end of November
- Permanent accommodation camp complete and occupied
- Processing plant approximately 60% complete and on
schedule
- Approximately US$55 million of
the US$110.8 million capital estimate
spent to date
- Project commissioning remains on target for Q2 2016
Since the last update (see Roxgold Press Release dated
September 14, 2015), development of
the Yaramoko Gold Project has advanced considerably with bulk
earthworks and the accommodation camp complete. Construction of the
processing facility remains on schedule in accordance with the lump
sum fixed price, engineer, procure and construct ("EPC") contract.
Mine development is well advanced and continues to make good
progress ahead of start-up. The Yaramoko Gold Project remains on
budget and on schedule to produce gold in Q2 2016.
At the end of November, the Company had spent approximately
US$55 million and remains on target
to complete the Project within the planned budget of US$110.8 million.
Roxgold President & CEO, John
Dorward states: "The progress of development at Yaramoko is
very encouraging. With construction now 60% complete, I am
pleased that we remain on schedule and within budget to complete
the mine development and remaining plant facilities. In the
coming months, we will be dedicating our attention to operational
readiness as we progress towards commissioning the Project, as
projected, in Q2 2016. "
Bulk Earthworks
The bulk earthworks scope is complete. The lining of the TSF is
largely complete and expected to be finalized in December. At
the end of the wet season, the Water Storage Facility contained
210,000m3 of water.
Camp Construction
Construction of the 216 person accommodation camp is complete
with commissioning and occupancy occurring in October. The catering
contractor, All Terrain Services ("ATS"), is on site and managing
the operation of this new facility for Roxgold.
Mine Development
Over recent months, the underground mine access infrastructure
was successfully advanced in accordance with plan. The Armtec
tunnel is installed with the engineered backfill around the tunnel
approximately 60% complete.
The underground access ramp has advanced approximately 315
metres from the portal; Two level accesses (5270 and 5253), have
also been developed. The underground contractor, African
Underground Mining Services ("AUMS"), has been advancing
development at a rate in line with the projected plan. Multiple
headings are now available to the contractor and advance rates are
expected to continue meeting the plan. Ground conditions are as
expected and water inflow, to date, has been negligible.
Underground development in the coming months will extend the
eastern ramp and provide access for ventilation infrastructure
which is scheduled for installation in late Q1 2016.
Construction of the surface mine infrastructure, including
workshops, offices and the back-up power station remain on
schedule.
All of the necessary AUMS equipment for the remaining
underground mine development through to gold production is now on
site.
Processing Plant
Plant civil and concrete works are 97% complete with only minor
grouting and repairs to be performed after the installation of
mechanical equipment. These works were completed ahead of schedule
and have paved the way for subsequent disciplines (including
structural steel, mechanical, platework, piping, electrical and
instrumentation) to advance across the site.
The carbon-in-leach ("CIL") tanks have been erected and by
the end of November were at full height. Structural steel has begun
to arrive on site and is being pre-assembled. By the end of
November, the mill floor steel had been installed with steel
installation in the CIL area planned for December.
The Semi Autogenous Grinding ("SAG") mill has been assembled and
lifted onto its pedestals. Representatives from Outotec, the SAG
mill supplier, will return in January
2016 to complete the installation of this key piece of
processing equipment. Sheds for the workshop, warehouse and
reagents storage have been erected. Construction of the site
office, mess and security buildings has commenced with completion
scheduled in early Q1 2016.
The lump sum engineering, procurement and construction ("EPC")
Contractor (DRA/Group Five Joint Venture), has completed all
necessary procurement and all outstanding items are now in transit.
These include structural steel, the balance of mechanical
equipment, electrical and instrumentation materials which will
arrive in December and January.
Overall, the Processing plant is approximately 60% complete.
Operational Readiness
Roxgold's management team continued to advance preparations for
the operational phase. The recruitment of all Department Heads,
Senior Technical and Senior Operational personnel is complete. The
Company is now recruiting and training local staff for the
remaining positions.
The assay laboratory contract is finalized and preparations have
commenced in anticipation for the delivery of the prefabricated
facility in December; commissioning of the Laboratory is planned
for Q1 2016.
The preparation and implementation of procedures for production,
grade control, reconciliation and systems development will continue
in the coming months. Similarly, Roxgold's environmental and CSR
teams are maintaining Roxgold's commitments to local regulators,
community members and external stakeholders with regular engagement
and reporting.
Financing Update
Following completion of the initial drawdown of US$30 million (see Roxgold Press Release dated
September 14, 2015), and the second
tranche of the Facility of US$21
million, the Company's cash position, including the
restricted US$15 million cost
over-run account, is approximately US$51.5
million.
Available Project financing remaining from the Facility is
US$24 million. A further US$10 million is available from AUMS in exchange
for underground development work (see Roxgold Press Release dated
September 29, 2014).
Remaining estimated pre-production capital required for the
development of the Yaramoko Gold Project is approximately
US$55.8
million.
Qualified Person
Paul Criddle, FAUSIMM, Chief
Operating Officer for Roxgold Inc., and Craig Richards, P. Eng, Principal Mining
Engineer for Roxgold Inc., are Qualified Persons within the meaning
of National Instrument 43-101, and have verified and approved the
technical data disclosed in this press release.
Photo Gallery
Shareholders are encouraged to follow the progress of the
Yaramoko Gold Project in our Photo Gallery on our website at
www.roxgold.com
About Roxgold
Roxgold is a gold exploration and development company with its
key asset, the high grade Yaramoko Gold Project, located in the
Houndé greenstone region of Burkina
Faso, West Africa. The
Company is currently in construction and expects to be producing
gold by Q2, 2016. Roxgold trades on the TSX Venture Exchange under
the symbol ROG and as part of the Nasdaq International Designation
program with the symbol OTC:ROGFF.
"Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release."
Forward-Looking Information
This news release contains forward-looking information. Forward
looking information contained in this new release includes, but is
not limited to, the expected completion of the balance of the AUMS
equity financing facility and the terms thereof, and the expected
use of proceeds thereof. These statements are based on
information currently available to the Company and the Company
provides no assurance that actual results will meet management's
expectations. In certain cases, forward-looking information may be
identified by such terms as "anticipates", "believes", "could",
"estimates", "expects", "may", "shall", "will", or "would".
Forward-looking information contained in this news release is based
on certain factors and assumptions regarding, among other things,
the estimation of mineral resources and mineral reserves, the
realization of resource estimates and reserve estimates, gold metal
prices, the timing and amount of future exploration and development
expenditures, the estimation of initial and sustaining capital
requirements, the estimation of labour and operating costs, the
availability of necessary financing and materials to continue to
explore and develop the Yaramoko Gold Project in the short and
long-term, the progress of exploration and development activities,
the receipt of necessary regulatory approvals, including the
approval of the TSX Venture Exchange for the balance of the AUMS
equity financing facility, and assumptions with respect to
currency fluctuations, environmental risks, title disputes or
claims, and other similar matters. While the Company considers
these assumptions to be reasonable based on information currently
available to it, they may prove to be incorrect.
Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and actual
results or developments may differ materially from those in the
forward-looking statements. Factors that could cause actual results
to differ materially from those in forward-looking statements
include: changes in market conditions, unsuccessful exploration
results, changes in the price of gold, unanticipated changes in key
management personnel and general economic conditions. Mining
exploration and development is an inherently risky business.
Accordingly, actual events may differ materially from those
projected in the forward-looking statements. This list is not
exhaustive of the factors that may affect any of the Company's
forward-looking statements. These and other factors should be
considered carefully and readers should not place undue reliance on
the Company's forward-looking statements. The Company does not
undertake to update any forward-looking statement that may be made
from time to time by the Company or on its behalf, except in
accordance with applicable securities laws.
SOURCE Roxgold Inc.